Digital Place-based Media ROI Analysis - Defining Value. ROI or Die: Analytics Whitepaper Analytics are the backbone of Return on Investment (ROI) analysis and of optimization. The way that metrics are used defines the investment worthiness of communications media. This paper provides an analytics framework for Digital Place-based media investment., validation and performance improvement. When Albert Einstein presented his equation E=MC2 in a paper published in 1905 titled “Does the Inertia of a Body Depend Upon its Energy Content” he illustrated that when questions are properly framed, they can lead to important answers, insights and innovations. While no simple, broadly applicable equation exists to codify the combined art and science of messaging and communications, key elements of this equation are clearly “outcome” resulting from the “relevance” of “content” presented to “audience”. This paper describes the analytics that are used to plan and validate investment in digital infrastructure, advertising and operations, and serve to optimize digital place-based media effectiveness. Analytics are much more than “a worthy cause,” indeed analytics are a primary tool of the growing digital messaging age.

Table of Contents

A. What Digital Media is Now A1. Digital Place-based Media A2. Business goals achieved A3. “Digital” – Marketing’s Trojan Horse A4 The Communications Continuum

B. Analytics for Decision Support B1. Communications Value B2. Infrastructure Investing B3. Paid, Owned and Earned Advertising B4. Message Optimization C. Insights/Actionable Intelligence C1. From Data to Wisdom C2. Leveraging Available Data C3. Presence-Notice-Dwell C4. Sampling C5. Anonymous Viewer Analytics C6. Interview / Survey C7. Sentiment Analysis D. Approaches to Analytics D1. In-house D2. Third Party - Objective Expertise E. Costs of Analytics E1. Typical Service Costs E2. Opportunity Cost E3. The Lies You Believe

February 2012 By Lyle Bunn

Copyright BUNN and Lyle Bunn. February 21, 2012

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Dynamic Media supplements included in USA Today, The Wall Street Journal and Canada’s The National Post. His ebook “Digital Signage Planning Guide” now in its 5th edition is used around the world and the SPEED Digital Signage Training Program that he developed has been presented to over 2000 professionals. He serves on the advisory boards of Digital Signage Expo and Customer Engagement Technology World and is a member of the Adjunct Faculty of InfoComm International. He has served as a judge of several industry award programs including the DIGI Awards, POPAI’s OMA Awards, NEC Best of InfoComm Awards and the Digital Screenmedia Association Industry Excellence Awards. See www.LyleBunn.com for additional resources related to Dynamic Place-based and Digital In-Store Media or contact Lyle@LyleBunn.com Context of this whitepaper: Digital Place-based media, also called Digital Signage, Dynamic Signage, Retail Media or similar names has achieved critical mass and acceptance of audience. All elements of the sector continue to grow at a 23% compound annual growth rate (CAGR). The North America installed base of over 1.6 million displays includes over 350 advertising-based networks and many more “in-house” networks for shopper, patron, staff and student communications. Digital place-based media has found its place in “the Communications Continuum,” supporting and leveraging the success of other communications devices. As the underpinning technologies and operating approaches have been refined, it has proven its ability as a high reach and as an audience-targeted, high engagement media. This has led to the growing awareness of the importance of “content” relevant to targeted audiences and the achievement of desired business, communications and marketing goals, and with this, the high value of analytics for decision support and optimization of the media. This whitepaper offers a framework of analytics aimed at increasing the investment, use and optimal use of the media. As the media is used to reach “audiences of many” and generate high engagement, its technologies serve as its rocket, content as it fuel and analytics as its guidance systems. The author acknowledges and thanks the many organizations that have contributed to the high-growth practice of Digital Place-based media and to the development of this whitepaper. Special thanks go to Arbitron, Intel, Cineplex Digital Solutions, Saddle Ranch Digital and Broadcast International.

About the author: Lyle Bunn (Ph.D Hon.) is an independent analyst, advisor and educator in the high growth areas of Dynamic Place-based and Enterprise Media. He has assisted hundreds of firms in the planning of their ad-based and corporate digital place-based media initiatives. He has published over 200 articles and whitepapers on related subjects, and served as principal writer and editor of

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A. WHAT DIGITAL MEDIA IS NOW A1. Digital Place-based Media Dynamic signage and digital place-based media have experienced explosive growth, communicating messages on flat panels and through projections that inform, inspire and influence at places where people shop, browse, travel, gather, work and study. Every analyst report forecasts ongoing double digital growth for the Dynamic Signage industry in terms of display shipments, advertising and overall industry revenues. Each company that provides industry analysis/outlook including NPD DisplaySearch, iSupply, PQ Media, ABI Research, iSupply, Northern Sky Research, Frost & Sullivan and others point to growth in the 20% compound annual growth rate (CAGR) territory for most areas of the industry. NPD Displaysearch indicates that the sector is half way through a 10-year period of 23%CAGR. It has proven itself as “fit for task” and has gained the “approval of audiences” as attested by sales lifts, brand and message awareness, engagement and the broad, positive attitudes toward this place-based media. The 1.6 million flat panel displays deployed in networks across North America can reach more people than any TV network on any given day. According to the 2010 Arbitron Digital Video Display Study1, 70% of teen and adult U.S. residents have viewed digital video displays in the past month, an estimated 181 million people. Out-of-Home dynamic display reached the level of $1 billion per year in annual advertising revenues in just 9 years according to PQ Media. Overall annual industry revenues are estimated at $7 billion for new infrastructure, network operations, content and advertising placement. A survey by DigitalSignageToday.com that compares the views of 1200 respondents in 2011 to their 2009 views reflects that:

• Expenditure increases are planned. In 2009, 79% said they planned to spend up to $100K compared with 84% in 2011. 16% of survey respondents in 2011 said they would spend more than $1 million, versus just 6% on 2009.

• 73% expect budget increases over the next year versus the 53% who expected it in 2009.

1 See http://www.arbitron.com/study/digital_video_display_study.asp

More people see digital place-based messages in a day than watch any TV network.

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• 57% of displays are now networked versus just 35% in 2009.

• In 2009, 60% of displays had no third party advertising. In 2011, only 37% had no third party advertising.

• 24% of 2009 survey respondents expected to deploy new or additional screens in the 0-3 month period, whereas 49% of 2011 respondents expected to deploy or add displays.

• Respondents expecting to use Digital signage primarily for internal communications doubled in the period 2009 to 2011.

While thousands of organizations have started or grown in their use of the digital place-based, dynamic signage medium, it has achieved a critical mass of the installed base of networks, established its infrastructure of associations, events, awards and education, and refined its supply chains, technologies and business processes. It has also proven itself as an influential media that can simultaneously merchandise, brand and improve a location experience. Investment analytics and drivers for advertising-based, corporate and hybrid networks have also been continuously refined during industry maturity. Digital place-based media analytics was a subject of the 2011 Disney Analytics and Optimization Summit2, at which Lyle Bunn presented the status of analytics practices of the medium. A primary focus at the 400-attendee, 2-day event, which also included presentations by SAS, SAP, Merke and others, was the analytics and optimization of business processes, in particular including marketing and communications. (Some elements of this paper were presented by Dynamic Signage has earned its way as a new communications medium, while emerging rapidly and experiencing high growth as an “audience of many” display device and as a location-based “audience of one” interaction and engagement tool, more attention to analytics and measurement of performance have been required for investment assessment and optimization. “The reason that Digital Place-based Media is different” says Phil Cohen, President & CEO of Care Media Holdings Corp. who has been a driving force for industry growth and currently serves as the Vice Chair of the Digital Signage Federation, “is that we can deliver specific metrics about audience, dwell times and impact”.

2 Some elements of this paper were presented by Lyle Bunn at the 2011 Disney Analytics and Optimization Summit held Aug. 29-30, 2011, Lake Buena Vista, FL. http://www.disneynow.com/profile/web/index.cfm?PKwebID=0x1542919f0&varPage=home

Digital place-based media poised to enter next plateau of use/growth

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A2. Business Goals Achieved Digital place-based media is a "Swiss army knife" for marketing and communications messaging. It can be used as a cutting knife effectively at one time to get a message to targeted audiences. A second later the “cork screw” feature of the knife can inspire engagement and opt-in. As a Swiss army knife is "fit to multiple tasks" with benefits enjoyed through its use, so it is with Digital Signage. But it equally can serve as a precision instrument for audience targeting and message delivery. Once the utility of the device has been established, attention typically turns to maximizing its value. The following outlines the kinds of results that have been typically achieved through the use of digital place-based media.

Users have discovered that digital place-based media can often achieve multiple goals simultaneously in a single content spot or through the use of various spots in a playloop. Neuroscientists note that animated and motion visuals get noticed, if only briefly or for microseconds, because the brain is “hard-wired” to notice motion as a way to detect a threat or opportunity. After having noticed the visual motion, the brain quickly assesses the relevance of the message. The person then “ingests” or “de-

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The “Why” of Digital Signage

•  Sales Lift 4-50% up to 300% •  Generate Inquiries 5-15% •  Improved Branding / Recall 40+% •  Improve Visit Experience/’Environment 80% •  Reduce Perceived Wait Times -40% •  3rd Party Advertising $3-40 CPM

•  Increased Customer/Staff/Patron Awareness •  Better “Compliance” - Display Control •  Patron/Public Information and Safety •  Liability Containment

Revenue Generation

Cost Reduction

The bottom line: More effective communications spending.

Source: Various audit reports, award program entries and real scenarios

A “Swiss army knife” for communicators and marketers

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selects” the message, absorbing it, taking it in or disregarding it. As such, the place-based media influences the experience in an environment and if relevant, will influence ambitions and behaviors.

The complex dynamic of communications messaging has moved beyond the “sales funnel”. During the National Retail Federation conference in January 2012, Al Witteman of TPN Inc. noted, “engagement without conversion is useless.” He added “Product equity and sales lift are both critical factors because they demonstrate conversion today and the propensity to try / buy in future. While no simple, broadly applicable equation exists to codify the combined art and science of messaging and communications, key elements of this equation are clearly “outcome” resulting from the “relevance” of “content” presented to “audience”. The operative condition is “relevance” and it is this intention that is the focus of communicators’ planning and execution, and the area in which analytics provide a vital input to investment decisions and drives the optimizing of digital signage operations.

Multi-Purpose Media – simultaneous benefits.

•  Modulate pace •  Vitality •  Stimulation •  Motivation

•  Establish and Reinforce Value

•  Aspiration •  Audience

“Alignment”

•  Destination Leadership

•  Sense of safety •  Reduced

Perceived waiting / dwell times

•  Triggering ACTION •  Merchandising •  Engaging •  Selling •  Enrolling

Influence Ambiance

Energy Branding

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ENGAGEMENT

Outcome results from relevant content presented to audiences.

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Metrics have two primary purposes related to Digital Signage and these are closely inter-related at every stage of planning, deployment and use. 1. Describing the effectiveness of the medium as a communications device.

These measures provide input to the suitable level of initial and ongoing investment.

2. Providing input to optimize the content and application of the medium as well as refinement of messages to continuously improve the effectiveness of the communications devise toward achievement of business development and branding goals.

A3. “Digital” – Marketing’s Trojan Horse Digital is the modern “Trojan Horse.” “The “Trojan Horse” is a tale of an approach that allowed the Greeks to enter the city of Troy and end a 10-year conflict. The Greeks constructed a huge wooden horse, and hid a select force of warriors inside. As the Greeks pretended to sail away, the Trojans pulled the horse inside their city walls as a trophy of victory. That night the Greek force crept out of the horse and opened the gates for the rest of the Greek army, which had sailed back under cover of night. The Greeks entered and destroyed the city of Troy, decisively ending the war3.” So it is with “digital” – it is the Trojan horse of modern communications bringing with it all forms of message display and interaction. Very little in the communications world is not “digital” given its inherent economies in media authoring, management, distribution, presentation and more recently, analytics. Even static media such as printed signs, newspapers and magazines are composed and printed as digital files, enabling the repurposing of brand and media assets. “Digital” is enabling a marketing and communications revolution.

Sir Martin Sorrell, chief executive of WPP predicts three major trends over the next ten years. “The focus will be on new markets, new media and consumer insight.” He adds, “Data insight will become increasingly important. Information is no longer power. It is the ability to discern it and use it in a critical way.”

Sir Sorrell, says “The power in companies will shift to marketing’’4. Marketers will have an increasing amount of power in companies over the next ten years as technological and geographical shifts make their roles more important” 3 See http://en.wikipedia.org/wiki/Trojan_Horse

4 Original article: 17 Nov 2011 by Lucy Handley, Marketing Week. See http://www.marketingweek.co.uk/sectors/industry/sir-martin-sorrell-%E2%80%98the-power-in-companies-will-shift-to-marketing%E2%80%99/3031993.article

Digital media with analytics offer insights

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Sir Martin Sorrell, Founder and Chair, WPP Group

In his address at a Forrester hosted event on global marketing, Sir Sorrell noted that the volume of product innovation and the increasing amount of time people spend online are handing marketers a greater role.

He added “We see significant (production) over-capacity in virtually every industry”. When there “is too much stuff that means that marketing becomes even more important.” Sorrell cited WPP’s biggest client Ford as producing more cars than there is demand for. Indeed, virtually every product and service sector including manufacturing, distribution, health care and financial services have used digital technologies to gain operational efficiencies. At the National Retail Federation annual conference in January 2012, it became clear that the retail sector, which delivers $1.2 trillion in goods and services to consumers, is poised as no other industry to exploit digital technologies for sustainable revenue growth through its use of digital technologies for customer relationship management and business analytics5. Technology investments are the second largest expenditure by retailers behind inventory according to 2011 report Retail Horizons: Benchmark 2010. Retail and technology are natural partners – not just because of the symbiotic “win-win” relationship, but because each industry is continuously reinvesting and refining itself to better serve its clientele.

Sir Sorrell noted while attending the Consumer Electronics Show, January 2012 that “there is an imbalance between the media that people are consuming and where money is being invested in marketing, reflecting that about 32% of consumers’ time is spent online, including mobile, but global digital budgets are only about 17% this year”.

“This dissonance will be remedied over time and the flipside is that too much [marketing budget] is spent on newspapers. They stand out like a sore thumb.”

5 Summary of NRF2012 Conference titled “NRF Shouts Technology, Engagement and Talent” see http://www.digitalsignagetoday.com/article/189666/NRF-2012-Digital-in-store-media-called-to-deliver-Pt-I-Commentary

Digital media support the success of the $1.2 trillion retail sector

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A4 The Communications Continuum Due to its inherent characteristics digital place-based media has found itself in the middle of the “communications continuum.”

Communications devices in the communications continuum enable “360 / 365” messaging. “360 degree” messaging means that communicators can reach target audiences as they move through their day, and “365” is the desire that messages reach that audience at any moment, 365 days a year, when it is relevant to achieving the communications goal. Brands seek “ubiquity” to assure message dominance and awareness in a “recall-hungry” world.

This communications continuum has become distorted with the advent of internet and mobile connectivity, trending toward the circular (i.e. 360 degrees) for consumer engagement.

In-home TV viewing is fueling “couch commerce” as viewers browse and shop online while watching TV. Shoppers are comparing prices and ordering online for ship-to-home while in-store.

Social media including text, fan sites, commentary and discussion groups are fueling disruption of the traditional sales activation funnel.

Through this, digital place-based media delivers message control and influence at or near points of decision.

• Displays positioned in high traffic areas allow high “reach” and frequency

6

The “communications continuum”

Reach >> << Engagement

Cellular Tablet Internet Dynamic Signage Billboard Print Radio TV

Who is watching ? What are they watching ? Analysis of metrics for customized messaging.

Message to the ! Right PERSON, right PLACE, right TIME

Consumer marketing is “360 /365”

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of message presentation. • Targeting of an audience demographic or psychographic is achieved using

a specific location-based displays to present messages that most resonates with the target audience can be presented at specific times of day.

• Location-based messages can encourage mobile browsing, download and opt-in, adding further engagement and a closed-loop of sales activation when a mobile devise is detected.

Tablets, including iPads are finding their way into the Communications Continuum. Kevin Lawrence, VP Enterprise Sales, Broadcast International which has integrated tablet into associate-assisted, customer-facing retail banking networks points to a 2011 report titled “Video & The Tablet” by Interactive Media Strategies states that the more a company invests in - and uses - online video, the more likely it is to embrace tablet distribution of video content. The report states that financial service companies lead (tied with construction) the sectors in the area of “already having business video available on tablets” with 31%. An additional 21% of financial companies surveyed indicate they planned to deploy video to tablets in 2011.

The communications continuum reflects the messaging options available to marketing organizations. The primary role in media usage is to determine the degree to which available media should be applied to achieve communications goals. Metrics related to the impact on and engagement of targeted audiences are the only way to guide media usage decisions. The communications continuum is addressed in section B3 related to paid, owned and earned advertising. B. ANALYTICS FOR DECISION SUPPORT Analytics are the backbone of Return on Investment analysis and of optimization. The way that metrics are used defines the investment worthiness of communications media. Since analytics are the basis of making any investment decision, anyone involved in the supply or use of digital place-place media should be involved in analytics. This includes technology supply and operations (i.e. hardware, software, connectivity, integration, installation), advertising, content and financing. "ROI analysis must be a part of digital media networks,” says Steve Harris, Vice President of Cineplex Digital Solutions6 that has been recognized with many 6 Cineplex Digital Solutions (CDS) received a special DIGI "Judges Choice" award in 2008 for its supply model which uniquely links communications objectives, content strategy and technology infrastructure with ongoing operations. CDS serves a wide range of retailers and brands including Scotiabank, Labatts, Rogers, ONroute, Holt Renfrew,

Tablets are becoming part of The Communications Continuum between online and mobile

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industry awards for its network planning, operations and content work. He adds “while this helps to clarify objectives and can help define the technology and operating environment at the planning stage, it also provides extremely valuable input to optimize the performance and value of this communications vehicle during ongoing use. It is all about maximizing return on investment in its broadest possible definition." Analytics are used to describe the effectiveness or the potential impact of a medium as a communications device, to validate and plan investment and, importantly, to provide input in order to optimize the use of the medium in order to better serve achievement of communications and marketing goals. When Albert Einstein presented his equation E=MC2 in a 1905 paper titled “Does the Inertia of a Body Depend Upon its Energy Content” he illustrated that when questions are properly framed, they can lead to important answers, insights and innovations. Media analytics focus on better understanding the degree to which intended outcomes are, or might be achieved. Quantitative measures are based on counting. They are a tangible measure of impact and when used as a sampling, can be used to predict outcomes on a wider scale. Quantitative measures include for example, traffic, viewers or transaction volume including, for example sales lift, enquiries, applications, registrations. It could include traffic to website, devices detected, downloads, opt-in or other responses to an offer or requested action, etc. Qualitative measures are less tangible or more subjective, typically more concerned with the degree to which target audiences are aware of messages. This provides a valuable input toward future possible outcomes, on the basis that if dynamic messaging is not being noticed and ingested, no resulting action or growing awareness can be expected. The quality of engagement with place-based messaging on the part of targeted audiences can be measured in several ways including Anonymous Video Analytics (AVA), intercept interview or questionnaire. Questions can be aimed at establishing the awareness of messages and attitudes resulting from the messaging, perception of the information displayed, etc. Responses can suggest the propensity for future action and can gauge the perceived value of the dynamic media and the messages presented in areas of reduced perceived waiting time, providing education, entertainment or useful information, adding energy to the environment, etc.

Maple Leaf Sports and Entertainment - Air Canada Centre, Aramark, SunTrust and others.

Quantitative and Qualitative measures apply

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Analytics provide input to decisions related to spending on advertising and the value of investment on technology infrastructure. See the glossary of Digital Signage terms published by The Digital Signage Federation (http://www.digitalsignagefederation.org/glossary) and the glossary of advertising-related terms provided by the Digital Place-based Advertising Association at http://www.dp-aa.org/glossary.php. B1 Communications Value

The following offers a summary of the use of analytics in support of the achievement of the business and communications goals of the dynamic place-based media.

If the goal is… Analytics are used to.. Advertising placement Describe audience size, demographics

and viewing patterns Refine the effectiveness in generating

outcomes such as sales lift, brand awareness, engagement and propensity to buy

Plan and place advertising and sponsored messages

Help Digital Place-based network operators to get on the plan, negotiate a fair price and gain renewal/repeat orders

Improve patron, visitor, staff and student awareness of key messages

Report on message delivery effectiveness

Describe improvements to the experience at the location

Generate outcomes Report on tangible outcomes Indicate where content and messaging

requires improvement Determine the worthiness and potential value of investment in dynamic signage

Mitigate and manage investment risk

Quantify current impacts and forecast possible business value

Success with digital place-based media is based on clarity of the intended business, communications or marketing outcomes to be achieved through the use of the media. The term “Return on Objectives” (ROO) is typically applied as additional, less quantifiable benefits beyond “Return on Investment” (ROI).

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Since digital place-based media has proven its ability to achieve multiple communications goals simultaneously, defining outcomes as primary, secondary and tertiary offers the framework for value assessment. Digital signage for staff communications typically seeks to improve the following, including the ability to reach all employees or those in a group, regardless of their location or work shift: a) Awareness of key messages that could be lost in the clutter of email and

memos b) Safety, as reflected in fewer injuries, lost work days, etc. c) Staff motivation/productivity d) Recognition of people and contributions e) Awareness of current public, investor and partner relations messages f) Security and adherence to security policies g) Traffic to internal website for download of additional information on policies,

programs, procedures, etc. h) Use of staff services such as health and career counseling i) Compliance/adherence to policies and procedures j) Awareness of corporate priorities and successes k) Recruitment costs through increased job referrals/applicants l) Productive use of infrastructure such as meeting rooms, office services m) Guest and visitor relations Digital Place-based media for customer or patron communications typically aim to achieve the following types of outcomes: Revenue growth a) Ad Revenues: Payment from suppliers or third parties for ad display. b) Sales Lift: Revenue from product or service sales including up-sell and cross-selling c) Increased Margins: Sales of products prior to discounting or from sales early in the stock cycle. d) Advance Orders: Achievement of sales prior to receiving a product shipment or in advance of service delivery needs. Advance orders improve cash flow and “scoop” sales that might go to competitors. e) Staff Training: Better training on sales approaches, or product features and benefits can improve in-store staff productivity. f) Loyalty member growth: Direct membership fees, increased sales and revenues derived from increased visit frequency, participation and list rental. g) Website traffic: Improving web traffic can increase online and in-store sales, and generate increased banner ad revenues, as well as gift and loyalty card sales.

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h) Mobile engagement including download, opt-in and mobile commerce. Cost Deferral a) Reduced costs of printing, distribution, installation, removal, damage and discarding of printed materials. Increased speed of messaging and compliance are additional, related benefits. b) Reduced training and management travel/time costs to locations when the digital signage network is also used for staff communications for product knowledge, motivation, safety and compliance communications, merchandising plans, communicating corporate values and directions, etc. Improved employee communications can reduce costs related to staff replacement and result in improved customer service through a better-informed and skilled employee. c) Reduce shoplifting and stock shrinkage through deterrent messages d) Increase the “speed of messaging” by reducing the time required for print-based communications. Engagement Objectives Many positive impacts of dynamic signage are subjective and less easily quantified. They do however lead to the tangible measures of improved revenue and brand impression through improved visit experience, product/service awareness and propensity to buy. Some examples of engagement objectives are as follows. Improve the experience in the environment by… a) Reducing the perceived waiting time at check out and in waiting areas. b) Improving the relevance of an offering to environmental conditions, trends

and fads. c) Improving the in-store experience by adding audio, visual and information d) Making the retail environment more unique and interesting. e) Making shopping more fun. f) Aligning with community and demographic interests with relevant

information. g) Inexpensively refreshing the environment – in particular for frequent visitors. h) Entertaining the co-shopper or companion. i) Inform the shopper of new product and service offerings. j) Providing changing, interesting, target market visuals relative to other retailers

in the product vertical or mall “district”. Increase shopper attention a) Pulling traffic into retail-service space from public space, walkways, mall

area. b) Increasing shopper dwell time.

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c) Deepening the “loop” of patrons to browse the store more fully. d) Increasing shopper visit frequency. e) Creating awareness of programs such as gift cards, loyalty, on-location events

or offerings, sponsorship, community involvement, etc. Align with and fuel consumer aspirations a) Solidify user loyalty. b) Present multiple scenarios/aspirations for the patron (i.e. the “glow” of

joyfulness, a fun/healthy lifestyle, good times, relationships achieved, etc.). c) Align products or services with movie trailers, music videos, destination clips

to provide consumers a cultural touch-point to associate with the message. d) Correlate products and services with emotional moments that shoppers can

relate to. e) Reinforce messages delivered using other marketing collaterals. f) Place the product in a lifestyle context (i.e. a good book during holidays) Clarify the offering a) Presenting visually how a product will work, look and move when in use. b) Profiling features and benefits. c) Visually demonstrating how a product “goes with” another (i.e. scarf with

jacket) Present a “call to action” a) Propose a purchase or enquiry. b) Display in-store promotions c) Issue electronic coupons d) Present limited time, in-store offers e) Pre-sell incoming products Offer ways for the customer to engage a) Promote online and mobile programs b) Promote loyalty programs, gift cards, gift registry and website c) Promote special events d) Provide the reason for a future visit. e) “Humanize” staff by profiling their attributes and capabilities. f) Motivate engagement through other approaches that improve discourse

between the brand and the consumer (i.e. contests, text message voting, etc.) Communicate “values” a) Present examples that illustrate the organization’s goals, attitudes and values b) Motivate, inform and train employees (directly or through ambient display)

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c) Improve the sales-focused partnership with suppliers. Follows a simple framework to define benefits in three primary operational areas that might be targeted for digital signage achievement in for example, in a quick serve or fast casual restaurant.

The digital media pundit adds7 “Speak to the indisputable fact that people are harder to reach traditionally and, when in shopping mode within stores, they are much more receptive to see and act on a message. That’s why POP has always thrived! But you have to help them understand that it’s not just the message —

7 See http://www.digitalsignageweekly.com/article/63658.aspx Managing Expectations for Metrics at the Local Level.

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Business Value

Objectives/Benefits

Improve the Environment

Increased Revenues

Reduced Costs

•  Reduce perceived wait time

•  Increase visit frequency

•  Destination attraction

•  Info-tainment

•  Add energy and vitality

•  Reflect community involvement

•  Up-sell & Cross-sell

•  Increase visit frequency

•  Parties, catering, gift cards

•  3rd Party Advertising

•  Reduce communications and promotion costs

•  Improve visual impact

•  Target messaging

•  Focus staff

In a September 2011 article titled “Think Globally – Act Locally” in the Digital Signage Best Practices Guide, Laura Davis-Taylor, Senior Vice President, Managing Director, BBDO ShopWork, advised digital media users and network operators in retail to “hone in on your local selling strategy”.

Point of Purchase messaging delivers results

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it’s what the viewer does after they see it. Any advertiser needs to think about the power of a killer call-to-action to close the deal”.

In the same article, Rob Gorrie, president/founder of ADCENTRICITY, agrees. “In-store location-based metrics are often thought about in the context of reach, frequency, opportunity to see (OTS), and similar above the line media metrics. It’s simply the wrong direction to be going. While it fits in with existing media models and needs to look like the same apple for some buyers, the brands and retailers themselves look at in-store digital networks in a below the line capacity — less GRPs (Gross Rating Points) and more ‘yes please.’ This means case sales and CRM (Customer Relationship Management) acquisition and retention programs. If you ain’t moving cases or product or can’t demonstrate an action or a lift in some capacity, you aren’t going to be around for long. Below the Line digital media screams accountability, and you need to be able to prove it, optimize it, and improve it — even if it’s simply showing you sold two extra lattes today compared to yesterday or helped a store add three more Facebook fans.”

On average, says Digital Signage analytics provider Arbitron, place-based digital video will deliver between 15% to 45% brand recall, depending on the creative, schedule and other factors. Below are actual results from different content spots of a playloop in a Digital Signage network located in a retail environment. The categories included Drug, Beauty/Health, Salty Snack and Carbonated Beverage. In this example a significant variation exists, reflecting the differing quality of content composition and interest in messages.

In having conducted many Dynamic Media Effectiveness Audits, Arbitron is able to gain specific information about patron reaction. Following provides general information about the perception of Dynamic Signage in a retail environment.

19%

29% 31% 31%34%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Brand A Brand B Brand C Brand D Brand E Brand F

Aided Recall

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B2. Infrastructure Investing Any use of digital place-based medium requires a clear definition of intended outcomes and this is particularly true when investment in the deployment and operation of a place-based network is considered. The planning process starts with describing intended outcomes so that Return on Investment (through tangible outcomes) and Return on Objectives (through less tangible outcomes) can be assessed. The determination of the content required to achieve these outcomes, including advertising content can be made. Following this, the technology infrastructure that will be required to present the content that will achieve the communications goals can be defined.

On average, viewers have a decidedly positive attitude toward most digital place-based programming. Roughly 2/3 of those who watch digital place-based video agree the programming is “useful”, “entertaining”, “a good idea” and/or feel the network makes their experience “more enjoyable”. More than three-quarters of retail video viewers find the screens helpful. Seventy-eight percent (78%) of the consumers who have seen video in a store feel the displays that feature product of sales information is either very or somewhat helpful. Screens located at checkout / in line reduce perceived wait time. Multiple network studies have shown that customers perceive their wait in line to be an average of 30% to 50% less when screens are present.

Attitude Toward Digital Place-Based Video

Source: Arbitron Digital Place-Based Video Study 2009 and an average of multiple customer reports.

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Analytics are used to assess investment value at stages of network planning and deployment, and subsequently, to continuously refine operations to optimize the benefits achieved. Based on expected traffic and the anticipated impact of messaging, outcomes can be speculated. The metrics of a “proof of concept” assessment can then be used to project outcomes that will be of value to communicators, advertisers, viewers, as well as the network operator, investor and location provider. Ongoing use of the display network with associated refinements and analytics will enable a maximum return on the investment. The technology and operational investment required for dynamic display can be relatively easily quantified, but the business case supporting advertising sales and the merit of investment in content is very much analytics driven. B3. Paid, Owned and Earned Advertising Communicators, including brands and agencies, are increasingly focused on gaining the highest return on time and money invested in achieving their communications goals. “All media is measured” to the extent that measurement is needed to reveal its value and potential. New media must attest to its improved value compared to

49

Digital Place-based Media Business Process

$

ROI

ROO

-------------- OBJECTIVES

Business Model

Network& Playlist

Admin.

Software

Displays

Player

Connectivity

Financing

Distribution (AV

/IT)

Content

System

Integration

Ad S

ales

Analytics

Analytics

Continuous improvement is essential to maximizing results

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other alternatives and this is entirely based on analytics. While this comparison is preferably an “apples to apples” comparison the capabilities of dynamic, out-of-home, place-based media enable much richer data and accelerated cycles of test and assessment. This advantage can be expressed in analytics. As outlined in Section A4, “The Communications Continuum” offers a framework to discuss media use payment models and the role of analytics in each. Paid: Message display on mass media such as TV, print and other high reach “audience of many” media is typically paid for by advertisers on the basis of Cost Per Thousand viewers. CPM (“M” being the roman numeral for 1000) rate is the currency of these media, as it is for digital place-based networks that sell on the basis of gross audiences. Demographic profiles of the audience are typically applied to clarify the value of an available audience to the medium. Owned: Media channels such as internet sites, magazines, newsletters, sponsorship, naming rights, billboards or digital signage networks are often owned by brands, retailers and organizations. Maximizing the value of the communications asset for engagement is key and the Cost Per Engagement (CPE) becomes a measure of performance. As advertisers seek tangible outcomes from CPM-charged media in a pay-for –performance model, CPE is sometimes applied. Engagement can be defined as ingesting the message, visiting a unique URL, download, opt-in or other interaction. Earned: Engagement hopefully will move to “activation” in which a transaction or a tangible record of interaction occurs. Cost Per Activation (CPA) becomes the currency of media commerce in this case. As media users and capability providers seek to maximize their investment and exercise a “best value” approach, metrics describe, “what happened” and offer insights that can be used to optimize messaging. An emerging area of earned media value lies in its achieving positive social media or public relations profile. Ralph Lauren, for example “earned” media profile when it deployed interactive displays in its Fifth Ave, New York storefront that allowed 24 hour online shopping. In seeking advertising investment, digital place-based network operators must, as a minimum, clearly distinguish the audience that they can (or did) deliver to an advertiser. Section D3 describes the “Presence – Notice – Dwell” industry standard devised by the Digital Place-based Advertising Association (DP-AA), which can include information such as age range, gender and other factors.

In proving their value, media for messaging is often “owned” media

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The Platt Research Institute (PRI)8 research summary “Agency and Brand Attitudes and Perspectives Regarding Digital Place-Based Advertising,” reflects that:

• 38% of respondents stated that the most important requirement to establish the Digital Place-based advertising industry was metrics.

• 35% believe that reliable metrics are essential to increasing brand adoption.

• 33% said that weak ROI on metrics was a primary challenge in working with DPA networks

• 91% of the agencies interviewed in the research noted that such metrics could justify networks charging the brands a higher CPM.

B4. Message Optimization Marketing communications is the combined art and science of storytelling to influence behavior. Even if the message is a short announcement or offer, it must instill and propose to fulfill needs, wants and desires. Analytics are the fundamental tool to assess the performance of a message and to improve it. It is after all, the content – the message, that delivers on the value of the media once the infrastructure is in place to present it. And, it is content improvement that most benefits from the insights that analytics can provide. “Test, Adjust, Optimize” says Kim Sarubbi, President & CEO of Saddle Ranch Digital, an award-winning digital media content strategy and production house. In describing the close relationship between analytics and content production, she says, “Depending on the scope and scale of their needs we plan a mix of on-location intercept surveys and audience counts to provide credible performance data to both support the advertising sales force and be accountable to media planners and/or end-user decision-makers. “The data that we look to extract” says Sarubbi “covers four priority areas: Audience Demographics & Behavior, Messaging Recall & Impact, Media Effectiveness and ROI. Utilizing a reputable marketing analysis company to define and execute a targeted measurement study is an imperative investment especially for our ad-funded network clients. Not only do they provide specialist data analysis technologies and systems but, most importantly, credible third party reporting that can be leveraged for selling as well as planning for continued success.”

8 See “Agency and Brand Attitudes and Perspectives Regarding Digital Place-Based Advertising,” Platt Retail Institute, January 2012.

Data provides insights to adjust and optimize

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The key question to be answered by analytics is “How well is the content spot working to achieved the desired outcomes?” In answering this, insights such as “when does it work best – or less effectively?”, with what demographic/psychographic profile?” Comparing actual viewer data to the intention of the content provides insights to refine and improve the effectiveness of the spots or the campaign. C. INSIGHTS /ACTIONABLE INTELLIGENCE C1. From “Data” to “Wisdom” The 2011 movie “Moneyball” tells the story of the transition of professional baseball to an analytics-driven industry. A quote by Mickey Mantle starts the film.

Metrics help to define and refine business objectives, move beyond “the technology” into its application and allows initiatives to be made into “chewable bites”. “The new currency of the media world is data,” said Ray Rotolo, COO of Posterscope in addressing the sixth annual Digital Out-of-Home Investors Conference. Marketing and communications is undergoing a broad-based, massive transition to analytics and the integration of analytics into operations. Consumer engagement is a “moneyball” world in which analytics drive investment decisions. This transition to operationalizing analytics recognizes that information is powerful and uses the levels of abstraction of analytics to gain insights as these grow from data to statistics, information and knowledge toward wisdom.

“The new currency of the media world is data”

“It’s unbelievable how much you don’t know about the game you’ve been playing all your life.” Baseball legend Mickey Mantle

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C2. Leveraging Available Data Metrics useful to Digital Place-based media investment decision-making and optimization can be drawn from available data. This could include for example:

• Traffic at a particular physical or online location • Logs and records of the levels of activity and commerce • Point of sale information • Demographic and psychographic profiles of patrons and targeted

audiences • Spending habits and trends

While absolute numbers are useful and important, describing viewership in relative terms or as a percentage is especially valuable. Mike DeFranza, CEO of Captivate Networks that operates displays in elevators says, “In building Captivate Networks, we realized that our value proposition needed to be that “we reach more business professionals than the Wall Street Journal every day”. Other examples of relative reach might include X% of patrons, x% of staff, x% of visitors to a location, to illustrate audience penetration by the medium.

Levels of data abstraction guide decisions

9

Data

Statistics

Information

Knowledge

Wisdom

The barometer is rising ! It is hot and

humid !

Storm clouds are building !

A hurricane is coming !

We must take extreme shelter or evacuate !

Information is Power-ful aggregating of data offers insights and suggested actions

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C3. Presence-Notice-Dwell The Digital Place-based Advertising Association (DP-AA) has authored guidelines that enable the reporting of viewership and optimization of the medium. The Canadian Out-of-Home Digital Association has similar guidelines.

These measures, which provide viewership information and offer essential data to ROI analysis, are easy and inexpensive to gather using Anonymous Video Analytics (See section C4). This framework is important and empowering because the degree to which target audiences are aware of messages provides a valuable input toward future quantifiable outcomes, on the simple basis that if in-branch dynamic messaging is not being noticed and ingested, no resulting action or growing awareness can be expected. If there is engagement based on 3 measures including “presence” (traffic), “notice” (awareness and viewing of the display) and “dwell” (message ingesting) by viewers, then the message could be expected to lead to the intended response. Benefits that are typically realized through the use of dynamic display such as reduced perceived waiting time, providing education, entertainment or useful information, adding ambiance and energy to the environment and other points of

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Measurement = Audience

“Presence”, Quantifying viewers is in the area where the display is visible and, if appropriate, audible, + “Notice” - Evidence that the screen has been noticed. “Dwell time” – the viewers’ time in the display area.

Audience

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attractiveness of the system to branch patrons and visitors, could be considered as contributions toward marketing objectives of client engagement. C4. Sampling The role of analytics is to better manage investment risk and to optimize outcomes to maximize Return on Investment. There is point at which the investment in analytics required to obtain broadly inclusive and highly precise metrics is not cost-justified. The terms “representative” and “accurate” define the suitable scenario of metrics cost and benefit. Acceptable margins of error exist in every business decision input. Conscientious, responsible and representative metrics gathered from a relevant sampling with (fully disclosed) reasonable assumptions satisfy needs when both the metrics provider and the decision-maker agree to their suitability for budgeting purposes. Viewership and impact data are typically based on gaining a representative sampling and then extrapolating or extending this to all comparable locations or situations. In this way, the costs and time required to gain actionable intelligence is minimized, while system-wide implications are realistically projected. Sample size, in other words, the number of locations, interviews or data points captured reflects with complete accuracy, the reality of viewership or impact in the specific assessment group, but this can erode if the realities outside of the sampling differ. Since no two locations, people or impacts are exactly the same, the challenge is to minimize costs with sampling while assuring that it is adequately representative to confidently expect “system-wide” benefits at the same order of magnitude. Opinions vary about what sample size is considered “representative” as smaller sample sizes increase the margin of error. A 10-15% sample size is not uncommonly considered valid. C5. Anonymous Viewer Analytics (AVA) (All charts and images in this section courtesy of Intel) A highly cost effective and accurate way of gathering viewership data is through automated Anonymous Viewer Analytics (AVA). AVA uses an inexpensive webcam and proprietary facial form detection and tracking technology to distinguish the form of a face. AVA detects rather than recognizes faces. No infringement of privacy occurs since no photo of faces

“Representative” is a critical success factor in sampling

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occurs, no records of the webcam view are maintained and no person actually looks at the image captured.

AVA is typically used to measure the audience size and demographic characteristics, as well as gauge the interest in messages as a key input to message refinement. The most popular9 Anonymous Viewer Analytics (AVA) tool is the Intel® Audience Impression Metric (AIM) Suite10 which has been integrated with about 25 of the most used Digital Place-based Media Content Management Software systems11. Aggregation of anonymous viewer data provides metrics such as the number of viewers in the area of the display (i.e. presence”), display viewing (i.e. “notice”), the amount of time someone looks at the display (i.e. dwell). Gender, age range and other information about the viewer audience can also be provided. Links with the Content Management Software allow for analytics on a specific content spot.

9 Some of the other AVA offerings beyond the Intel AIM Suite include product/services from TruMedia, Video Mining, Quividi and Xuuk. Some of these have primary use in traffic mapping. 10 The Intel® Audience Impression Metric (AIM) Suite is based in part on the CognoVision Solutions, Inc. capabilities as acquired by Intel in late 2010. CognoVision was previously recognized as “the Best Measurement System” among entries of the 2009 DIGI Awards, and was named by The Canadian Innovation Exchange (CIX) as Canada’s 2009 Innovation Leader. 11 See www.intel.com/go/aimsuite

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Following sample chart illustrate age bracket and gender dispersion across viewership.

Through this, content can be refined to inform or influence more specific target audiences. This becomes especially valuable when age ranges or other viewer information is provided by the AVA system. Dynamic ad provisioning: By loading the AVA viewer detection software onto the local media player and linking it to the Content Management Software (as is typically the case with the Intel AIM System), a message or media spot can be automatically triggered for playout based on a match to the viewer demographic. This increases message targeting to intended viewers, but also introduces a new paradigm of advertising placement.

Knowing the gender of viewers enables more concise viewer descriptions for media planners and buyers, and enables content to be tailored for viewers in a location. In linking the AVA-based analytic to the Playloop, a determination about the appeal of a particular content spot to the target demographic can be made.

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In Dynamic Ad Provisioning, an advertiser could make a viewer targeted request of the digital place-based media operator that is equipped to handle the request. The media buyer could ask for example, that every time an adult male notices the display an ad showing the soda product presenting product use while “he” is entertaining, versus a different ad that better appeals to for example, young females showing product use in her situation. Each ad would be most relevant to the lifestyle context of each targeted audience. The AVA system would report on the number of playouts in support of the playout invoice. The advertiser, brand, network operator, location provider and the shopper all “win”.

AVA can be used to compare the level of static versus dynamic signage effectiveness. The following illustrates the dramatic benefit provided in viewer “notice” by replacing static with dynamic signage. In March at this location for example, 84,000 people noticed the animated message presented on a dynamic sign versus just 16,000 who noticed a static poster with comparable placement.

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This real-time reporting approach can provide insights useful to content composition. The following chart illustrates viewing duration (i.e. dwell) of a particular content spot. This “actionable intelligence” can serve as a key input to content composition. For example, the metrics indicate that almost half of viewers noticing the message looked at it for under 1 second, with over 85% dwelling on the message for less than three seconds. This indicates that there is high interest in the offer or information and that additional information that anchors on the initial message would be welcomed.

84.0

16.0

89.0

15.0

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20.0

30.0

40.0

50.0

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70.0

80.0

90.0

100.0

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('00

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March April May

Total Vierwership by Month

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.125  to  1 1  to  2 2  to  3 3    to  4 4  to  5 5  to  6 6  to  7 7  to  8 8  to  9 9  to  10

Seconds

Exposure Range (in seconds)

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Reliable, accurate viewership data is provided through the use of Anonymous Viewer Analytics (AVA), and valuable input is provided to content optimization. AVA provides useful data when digital place-based media is intended to work in concert with mobile engagement. In the model of a closed-loop system at a retail location message presentation on a place-based display motivates mobile opt-in, coupon offer and redemption with analytics at each step of the process. Examples of “closed loop” systems were presented on the National Retail Federation 201212 trade show floor by CopiaMobile, YCD Multimedia and ComQi. In a “closed-loop” system being deployed by iSign13 at 1400 Mac’s Milk convenience store locations in Canada, the Intel AIM Suite provides overall presence, notice, dwell and viewer demographic data. Metrics related to mobile opt-in and coupon redemption through the point-of-sale system then provide concise analytics of marketing program campaign performance, leading to optimization and cross-sell programs. C6. Interview / Survey Short interviews or a viewer completed survey that follow a structured pre-planned questionnaire can be used to gather perspectives and enable easy tabulation and analysis. A typical intercept survey will have questions aimed at capturing some demographic information and an understanding the viewer’s perception and impact of the display and its content. A short list of typical interview questions following some questions that establish demographic information might include:

• How long have you been waiting or in the location • Did you notice the display? • What information or ads do you recall (this reflects unaided recall)? • Do you recall seeing info/ads for the following on the list (aided recall)? • Did you/will you take any actions based on what you saw? • To what degree did you find the following info helpful (a list based on a

sliding scale from not useful to very useful)? • Did the display add to your visit experience?

12 See the NRF12 summary titled “NRF Shouts Technology, Engagement and Technology” at www.DigitalSignageToday.com or www.LyleBunn.com - resources 13 See www.iSignmedia.com and for additional information on this type of closed-loop display/mobile approach download the summary of the National Retail Federation 2012 conference “NRF Shouts Technology, Engagement and Talent” at www.lyleBunn.com

AVA serves “closed loop” display/mobile systems in retail

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C7. Sentiment Analysis Sentiment Analysis uses several approaches including interview or survey. One structure uses eight emotional descriptors such as anger, fear, surprise, contempt, happiness, etc. in an enquiry to gauge the sentiment evoked by information or media presented. Many of the world’s largest brands use this analysis technique to refine their messaging to better align the actual versus intended perception of the brand. “Sentiment analysis” allows for a deeper level of engagement intelligence to be gathered” said Dr. Bill Ratcliffe in his opening keynote address to a standing-room only crowd at the Customer Engagement Technology Summit on behalf of award-winning14 BrainJuicer15 . He defined how eight emotional responses encompass the high level range of human reaction to messages. “These offer insights to brand perception that can be used to refine messaging and forward the achievement of branding goals,” he said. SatisTraction® from BrainJuicer can deliver data in real time through an online portal, allowing managers and business stakeholders the opportunity to address customer service issues as they arise. “The graphical query system provides a framework to determine a viewers emotional reaction to a visual or message, and then further, helps to establish the intensity of that feeling. Ratcliffe noted that each of the eight high level emotions have a dozen layers of intensity description beneath them, and further refinements on the scale of intensity beyond that. This is very valuable to message development.

14 Marketing magazine named BrainJuicer as the Best Market Research Agency 2011 marking the second year in a row BrainJuicer won this prestigious award. At the 2011 American Association of Advertising Agencies (4A's) Jay Chiat Strategy Festival, BrainJuicer's ComMotion won Gold for Best Research Innovation marking the second year in a row BrainJuicer has won the Gold award, having won it in 2010 for DigiViduals. 15 See www.brainjuicer.com - in particular Communications Testing – ComMotion™: Customer Satisfaction – SatisTraction™: FaceTrace™

Sentiment Analysis offers content feedback.

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This technique has typically used survey, interview or internet panels but is in growing use using kiosks and interactive displays. One financial retailer has used the technique at ATM. As cash dispensing is being processed, a promotional message is presented on the ATM display and immediate followed with a touch-key input request based on sentiment options. This deepens to several layers quickly to offer useful insights. “In its analytics paper titled "Let's Get Emotional About Advertising," BrainJuicer asserted that traditional advertising and pre-testing measures favor the more deliberate, calculated and slow System 2 thinking, a term coined by Nobel-Prize winning Granddaddy of behavioral economist Daniel Kahneman. Instead, advertising should target the more instinctual, intuitive and emotional System thinking, validated through BrainJuicer's work measuring the emotional effect of winning IPA and CASSIES advertisements”.

BrainJuicer® sentiment analytics

Contempt

Surprise

Anger

Disgust

Happiness

Sadness

Fear

Neutral

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D. APPROACHES TO ANALYTICS As noted previously, the analytics effort must be cost-justified in yielding insights that clarify investment-worthiness and/or optimize communications approaches. Rather than being linear with a definitive start and end, or circular with recurring action-test-refine steps, analytics approaches are best reflected as a growing upward spiral. Core or primary objectives are set, the approach is tested and its impact assessed. Modifications are made and re-tested. The confidence that comes with the achievement of primary goals caused secondary goals to be focused on. These broader goals are then tested and refined, as even more goals are added for achievement by the medium. As content and playloops are enhanced, the return on investment increases exponentially. ROI Calculator : The ROI Committee of the Digital Screenmedia Association (DSA) has created an excel workbook with multiple worksheets as a good starting point as an ROI calculator. While providing areas to insert costs associated with the network, and areas of primary value, the calculator offers cost/benefit over time in a way that is useful to investment planning discussions. This calculator has not been made public (at time of this whitepaper), but has been offered as a benefit to Digital Screenmedia Association (DSA) members. Audience Metrics Guidelines16 have been issued by the Digital Place-based Advertising Association (DP-AA) as a first step towards developing audience measurement standards for the medium. It urges digital place-based networks to use the Guidelines to inform what should be measured in order to report comparable audience data. Counting : The influence or impact of the place-based media can be assessed by counting (i.e. quantifying) viewership and their response to the medium and its messages. Transaction volume and value before and after media presentation or by comparing media use in one location against a similar non-use location provides impact data. Quantitative outcome measures are obtained through activity logs or “scorecards” where the counts of transactions and interactions reflect effective interactions. Benefits in areas of branding and patron perception can be achieved through intercept or exit interviews. 16 The Digital Place-based Advertising Association (DPAA) has issued Audience Metrics Guidelines that can be downloaded at http://www.dp-aa.org/guidelines.php

An excel-based ROI Calculator has been drafted by the DSA – ROI Committee

DP-AA has created audience measurement standards

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A sample scenario: An example might be that of retail banking where the primary goals of the retail banking digital signage network is to increase customer engagement toward new and increased use of banking services. Secondary goals might be to reduce perceived waiting time and bring vitality to the banking location. Analytics conducted internally could focus on quantitative measure by counting and tracking business activities, with comparison to previous periods in the same or similar location. This might include a count of:

• meeting requests with Investment Advisors and other staff, • applications for services requested/provided, • information requests for new accounts and other services, • traffic to website pages, • downloads of mobile applications. • Mobile interaction through text, download or mobile commerce.

Anonymous Video Analytics (AVA) could be used to assess viewer interest in static posters versus dynamic displays in the same location, and determine the level of notice and dwell time on the part of different customer demographics. Activity logs could be established to count business activity in existing branches scheduled to receive In-branch media displays. Records should be kept in advance of and after installation of displays to provide a quantitative measure of the impacts of the system and its content. Intercept interviews or surveys could be undertaken to gauge message awareness, recall and perception. Section C6 “Interview / Survey” suggests the nature of possible interview questions in a 2-4 minute interview. This could be undertaken using internal research resources or draw upon credible digital signage audit/analytics service providers. D1. In-House Even as Dynamic Signage and Place-based media continues to grow and advance, the challenges of defining the business case haunts end users, frustrates suppliers and confounds the natural life cycle of projects. The capital and operating investment in Dynamic media must show measureable return on investment. This is in large part because the enabling technologies that underpin this communications instrument are capable of delivering a significant range of value. The selection of technology elements defines capabilities and costs.

Activity and transaction logs offer useful impact data

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Technology is the investment. During business case planning, the capital outlay can be well defined. But the capital outlay can put the business case on very shaky ground, when the costs of operating the network are not adequately considered. Successful networks consider the increasing costs of operations (which are primarily people-based). As increased message targeting, day parting and other functions are applied, and as the network expands, operating costs should not escalate, but enjoy ever-increasing economies through scale. The dynamic media business case is all about ROI and it must be in excess of the investment to warrant the time invested and to compete successfully internally against other cost saving and business-goal achieving investment possibilities. The Dynamic Signage medium has demonstrated consistently that it can deliver significant returns. Dynamic signage delivers results because the medium uses a visual language that can communicate concepts, illustrate features, present benefits and influence action and attitudes.

The challenge is often in defining the priority of the results and the benefits that are to be achieved. The return aspect of Return Outstripping Investment is based on a strong list of intended, and achievable, outcomes. Multiple investment returns are often achieved simultaneously. Each is a valuable benefit on its own - branding, promotion, merchandising and improving the experience at the place where dynamic media messages are presented. But these results are often delivered at the same time based on the inherent capabilities of dynamic signage. D2. Third Party - Objective Expertise Providers of measurement and analytics services such as Arbitron, Nielsen, Intel, PeopleCount, Decision Point Media Insights, DS-IQ and others have specialist capabilities related to dynamic place-based media. These firms are recognized for their independent analysis and harmonize with widely accepted measurement practices and standard industry approaches.

Place-based media must deliver a return on “time”

“Visual” is our new language”

Paco Underhill, Envirosell Keynote address - Digital Signage Expo 2009

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Names of providers of analytics services for digital place-based media are available at:

• Digital Signage Directory http://digitalsignagedirectory.com/

Fifty-two firms are listed under “Measurement and Analytics,” many of which are network providers or operators with experience in providing some analytics or expertise as part of their network offerings. Service providers can also be requested through major industry association such as:

• Digital Place-based Advertising Association (DP-AA) • Digital Screenmedia Association (DSA) • Digital Signage Federation (DSF)

Providers of analytics services typically operate in multiple media including digital place-based, kiosks, video networks, out-of-home (static signage and billboards), spectacular, TV, cable, radio, mobile and others. E. COSTS OF ANALYTICS Based on well-defined intended business and communications outcomes, metrics can often be attained using internal resources. Numerous firms ranging in size and capability specialize in providing Digital Place-based Analytics including technology, survey and interview approaches. Specialty digital analytics service providers typically act on behalf of a network operator, advertiser, retailer or location provider to gain actionable intelligence. DS-IQ for example, specializes in providing sales impact information by capturing or using available data (such as Point-of-sale), “masking” it (to assure brand confidentiality where required) and presenting it in forms required by different stakeholders. Technology-based analytics such as Anonymous Viewer Analytics that use viewer detection offer very low cost, location-based viewer analytics. Survey and interview-based analytics providers are numerous ranging from small independent providers or counsel and services, to full service audit providers offering a wide range of tools, experience and instruments.

Directories and associations can offer names of analytics service providers

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E1. Typical Service Costs A wide range of pricing for analytics is applicable to a broad range of services and approaches. The following is intended to offer an order of magnitude. Anonymous Viewer Analytics tools such as Intel AIM Suite can be used at some locations and easily moved to other locations to capture viewer data. Intel lists typical pricing at its website (www.intel.com/go/aimsuite) including a free 45 day trial, with pricing at about $10 per month per license. Survey and interview-based audit pricing is fully dependent on the effort expected, where for example the types of locations, the number of venues and markets, dayparts and audience sampling may differ and be required to constitute a representative sampling. Such audits of 10-15% of total locations (to be “representative”) are typically a minimum $75,000 and for larger networks are often over $100,000. Such audits may be conducted on a regular basis over time to determine changes in viewer attitudes or consider changes to the network size, playloop strategy and content used. Arbitron and Nielsen Media are primary, credible providers of Digital Place-based audit services and these firms have conducted the majority of audits for the largest ad-based and internal networks as well as for prominent advertisers. PeopleCount offers published rates17 at its website reflecting survey costs of between $4,400 and $38,000. One level of service at $39,800 (at the time of this whitepaper) includes 1,000 intercept surveys, 150 hours of audience counts in up to 20 venues sampled, for up to 3 markets visited in a 2-month turnaround. E2. Opportunity Cost When the retailer Wannamaker uttered in the 1920’s “half my advertising is a waste, I just don’t know which half”, it was a call to action by every communications medium to validate its value, in particular relative to competing and alternative media. A presenter at an advertising conference exclaimed “Marketing and advertising are terrific – because nobody knows when you are making a mistake. And without analytics – nobody will ever know!”

17 See http://www.peoplecount.biz/downloads/solutions/AudienceScope%20Surveys%20Fact%20Sheet%20&%20Rate%20Card.Peoplecount.pdf

A sampling of 10-15% is often considered as “representative”

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Today, investment only goes into media that is measured and which, through this, can illustrate that it will deliver against intended business, communications and marketing goals. Predictive models based on “if-then” scenarios supported by valid viewership and past performance metrics are the analytics domain of today and the “coin of the media” realm. Data sciences will continue to grow in the “Moneyball” world of media options, fickle, elusive consumers and uncertain paths to purchase and information access. The well-established advertising planning and placement approaches have long been supported by viewership metrics that are validated by respected and independent audit bureaus, and are consistent in terminology and reporting approaches. More mature media sectors, such as TV, Cable and publishing are reinforcing their merit by using analytics to better describe, understand, connect with and target viewers. Aside from more highly targeted advertising, the ability to serve ads based on program viewing or viewing patterns is increasing. While some argue that broadcast metrics may be inaccurate, the point is made that at least these metrics are equally inaccurate across the platform, and advertising rates reflect relative values. Digital media approaches have the inherent benefit of being able to capture engagement data with 100% accuracy, and in a manner that enables dashboard reporting and rapid investment adjustment to maximize value. Social media, which aims to connects communicators with communities of interest, can benefit from online browsing and transaction data to help drive targeted advertising, editorial or “advertorial” messaging. Mobile media, which aims to reach the audience of one or into peer groups by influencing an individual, also have the benefit of digital traffic counting. Digital place-based media, which sits on the communications continuum as an out-of-home, high-reach, broadcast type media, and a location-based, high engagement media, is compelled to deliver metrics for decision support that meet advertiser, end user and investment requirements. To not do so is to disqualify digital place-based as a valid and powerful medium that it is. It is to some extent unfortunate that digital place-based does indeed deliver high value when applied even reasonably well. The fact that humans notice the motion of video or animated messages on displays that are prominently placed at points where people have a heightened awareness of their surroundings (i.e. shopping,

Data sciences will continue to grow

Dashboard reporting and campaign adjustment enable “nimble” communications through analytics

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travel, gathering, work and study) means that messages are noticed, and when relevant are “ingested,” with action being taken on compelling or influential content. Outcomes can be seen as “good enough” and seductively, little attention given to performance improvement. Herein lies the opportunity cost of not using analytics. E3. The Lies You Believe Fortunately, Digital Place-based media has inherent characteristics that make it a fundamentally attractive messaging and engagement media. To know it is to love it. To understand the value of the media is to be compelled to use it. Frustration and exasperation live in the gap between those who know and want the increased use of digital place-based media, and those less experienced or aware of its value. The realities of the media are its own best arguments, and those arguments are best presented by facts presented as metrics through analytics such as:

• Actual or highly representative viewership expressed in terms of “presence”, “notice” and “dwell” for well defined demographic and psychographic groups.

• Impact data expressed as relative to intended or beneficial business, marketing and communications outcomes.

• Truly representative samplings, which through their attainment could be expected with high certainty to reflect outcomes through broader use of the medium.

Nothing is so corrosive as conjecture and nothing more powerful than fact. To move beyond insufficient data and analytics regimes for investment support and optimization is to move Digital Place-based media to its next natural plateau of use.

For Digital place-based media… - technology is the rocket, - “content” is the fuel, and - analytics is the guidance system.

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Other Suggested Reading The following additional materials are suggested reading related to Dynamic Place-based Analytics Related papers by Lyle Bunn available for download at http://lylebunn.com/aboutus.aspx (no fee or registration required)

• Fail to Plan – Plan to Fail. • Summary of NRF2012 Conference - “NRF Shouts Technology,

Engagement and Talent” • Campus Digital Signage Networks • Health Services and Dynamic Signage • The "CONTENT" of Dynamic Place-based Media: The Rise of The

"Content is King Monarchy". Digital Place-based Advertising Association http://www.dp-aa.org Research – Audience Measurement Guidelines Resources - Digital Proof of Performance Practices (pdf) Resources – Glossary

Arbitron Digital Place-based Video Study The Arbitron Digital Place-based Video study is conducted annually and measures the digital place exposure of US consumers age 12+.

Nielsen Fourth Screen Network Audience Report The Nielsen Fourth Screen Network Audience report is a quarterly syndicated report that provides audience estimates for digital place-based networks.

DPAA Audience Metrics Guidelines Disclosure Forms Use the Audience Metrics Guidelines to inform what you should be measuring in order to report comparable audience data. Other organizations offering information related to analytics include: Digital Screenmedia Association (DSA) Digital Signage Federation (DSF) DigitalSignageToday.com Adcentricity rVue DO Media Arbitron Nielsen Media Intel

www.LyleBunn.com 41

Lyle Bunn provides a range of services that includes facilitation, strategic and business counsel, project consulting, sourcing support, authoring and education. Current and potential end users, Investors, Operators and Suppliers of Digital Place-based media enjoy accelerated, sustainable success through the use of his expertise. Consulting services include:

• Project/network planning, review, refinement and optimization • Presentations to executives, stakeholders, partners and staff • Situation/Opportunity/Market Assessment • Business/Market Planning and Acceleration • Alternatives Analysis and Sourcing • Training, Education and Orientation • Strategy Development • Relationship Architecting (Introductions to suppliers and partners) • Vendor Selection, Negotiation and Engagement

Services are provided on a daily or project basis, and "The Doctor is In" telephone consultation program is used to provide input, information and responses to questions that often be handled quickly and by telephone. Often a short conversation with an objective, highly experienced expert can help launch, accelerate or correct a project, product or service. See http://lylebunn.com/Services.aspx Lyle Bunn Strategy Architect BUNN Co. O: 613-475-9121 C: 416-904-4426 30 Bayshore Road Brighton, Ont. K0K 1H0 Lyle@LyleBunn.com www.LyleBunn.com

About the author: Lyle Bunn (Ph.D Hon.) is an independent analyst, advisor and educator in the high growth areas of Dynamic Place-based and Enterprise Media. He has assisted hundreds of firms in the planning of their ad-based and corporate digital place-based media initiatives.